Firm may post needs and invite sellers to bid on announced products or requests for quotation (RFQs)

Pricing Model: Reverse auction – vendors provide quotes (bid) to firm (buyer) on price they will sell for – buyer selects the vendor with the lowest bid or quote

Net marketplaces (e-hubs)

Single digital market/exchanges to connect many buyers and sellers

Industry-owned or owned by independent intermediary

Generate revenue from transaction fees, other services

Use prices established through negotiation, auction, RFQs, or fixed prices

May be vertical marketplaces for specific industries or horizontal marketplaces for goods and services that are used across a variety of industries

Net marketplaces

Online marketplaces where multiple buyers can purchase from multiple sellers

E-government –

Involves the use of Internet technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer and the various branches of government

Financial Cybermediary – an Internet-based
company that facilitates payments over the
Internet (ex. PayPal)

Micropayments – provide content providers with
a cost-effective method for processing high
volumes of very small monetary transaction

E-commerce Advantages

Decreased costs

Better relationships with suppliers, customers, business partners

Price transparency – all can trade at same price

Round the clock 24/7/365

Global operations

More information on potential customers

Increasing customer involvement/feedback

Improving customer service

Increasing flexibility and ease of shopping

Increasing the number of customers

Increasing opportunities for collaboration with business partners

Increasing return on investment because inventory needs are reduced

Offering personalized services and product customization

Reducing administrative and transaction costs

Challenges:

Bandwidth capacity problems

Accessibility

Acceptance

Security issues

Potential Liability Issues

Taxation rules

Which of the following best describes long tail marketing?

Long tail marketing refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve).

Which of the following best describes an e-tailer business model?

An e-tailer sells physical products directly to consumers or to individual businesses.

Which of the following is true of the effect of the universal technical standards of the Internet and e-commerce on customers?

In the affiliate revenue model, Web sites send visitors to other Web sites in return for a referral fee or percentage of the revenue from any resulting sales.

Which of the following statements about the “wisdom of crowds” and crowd-sourcing is true?

Crowdsourcing utilizing the “wisdom of crowds” helps companies learn from customers in order to improve product offerings and increase customer value.

Which of the following is not one of the early key decision areas when building an e-commerce presence?

The manager should not consider the demands of the customers at this point in order to focus on the planning process.

Which of the following is true of the effect of information density in e-commerce markets?

It increases the price transparency for consumers.

EBay is an example of a _________________ electronic commerce category.

C2C

Which of the following is true of the effect of the ubiquitous nature of Internet on e-commerce?

It reduces transaction costs for a customer.

Which of the following statements about e-commerce and business-to-business transactions is true?

If even just a portion of inter-firm trade were automated, and parts of the entire procurement process assisted by the Internet, literally trillions of dollars might be released for more productive uses.

Google Apps, Photobucket.com, and Dropbox are all examples of which e-commerce business model?

A service provider

What type of e-commerce presence includes newsletter, update, and sales activities?

E-mail

Which of the following best describes behavioral targeting?

Behavioral targeting refers to the tracking of the clickstreams (the history of clicking behavior) of individuals across multiple Web sites for the purpose of understanding their interests and intentions, and exposing them to advertisements that are uniquely suited to their interests.

__________ is especially well suited for location-based applications, such as finding local hotels and restaurants, monitoring local traffic and weather, and providing personalized location-based marketing.

M-commerce

BarnsandNoble.com is an example of A _________________ electronic commerce category.

B2C

Which of the following best defines an electronic data interchange (EDI)?

An electronic data interchange (EDI) enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading, shipment schedules, and purchase orders.

Which of the following best describes the free/freemium revenue model?

In the free/freemium revenue model, firms offer basic services or content for free, while charging a premium for advanced or special features.

The social commerce feature that enables a consumer to log into sites through Facebook is called a​ ___________________.